function [WeiDist] = Principal_A2(Par2)
n = 50;
load ParEst_eh0_time0_Mex ParEst_eh0_time0_Mex
load W_time2_age0_eh0_comp11.out
load W_time2_age0_eh0_comp1.out
load W_time2_eh0_comp1.out
load stock_time2_age0_eh0_comp1.out
load stock_time2_eh0_comp1.out

Par1 = zeros(29,1);
Par1(1:24) = ParEst_eh0_time0_Mex;
Par1(21) = 10^(ParEst_eh0_time0_Mex(21));
Par1(22:24)=1000*ParEst_eh0_time0_Mex(22:24);
transition_rates=Par1(1:16); 
Par1(25) = 500*Par2(1);
Par1(26:29)=Par2(2:5);

w_f_g=W_time2_age0_eh0_comp11; % Read wages, g and f distributions
wf_1=w_f_g(:,1);        % Wage in formal sector
wi_1=w_f_g(:,2);        % Wage in informal sector
wf_2=w_f_g(:,7);      % Wage in formal sector
wi_2=w_f_g(:,8);      % Wage in informal sector

w_mom=W_time2_age0_eh0_comp1; % Read wage moments
meanwi_1=w_mom(1); meanwf_1=w_mom(2);   meanwi_2=w_mom(3);  meanwf_2=w_mom(4);  sdwi_1=w_mom(5); sdwf_1=w_mom(6);  sdwi_2=w_mom(7);   sdwf_2=w_mom(8);
p10wi_1=w_mom(9);  p10wf_1=w_mom(10); p10wi_2=w_mom(11); p10wf_2=w_mom(12); p25wi_1=w_mom(13); p25wf_1=w_mom(14); p25wi_2=w_mom(15); p25wf_2=w_mom(16); 
p50wi_1=w_mom(17); p50wf_1=w_mom(18); p50wi_2=w_mom(19); p50wf_2=w_mom(20); p75wi_1=w_mom(21); p75wf_1=w_mom(22); p75wi_2=w_mom(23); p75wf_2=w_mom(24); 
p90wi_1=w_mom(25); p90wf_1=w_mom(26); p90wi_2=w_mom(27); p90wf_2=w_mom(28); minwi_1=w_mom(29); minwf_1=w_mom(30); minwi_2=w_mom(31); minwf_2=w_mom(32); 
maxwi_1=w_mom(33); maxwf_1=w_mom(34); maxwi_2=w_mom(35); maxwf_2=w_mom(36);
 
wage_moments_data=[meanwi_1; meanwf_1; meanwi_2; meanwf_2; sdwi_1; sdwf_1; sdwi_2; sdwf_2]; % only using mean and stdev

stock_mom=stock_time2_age0_eh0_comp1(1:9); % Read stocks [FF_h;FI_h;FN_h;IF_h;NF_h;II_h;IN_h;NI_h;NN_h]
stock=stock_mom';

% Bootstrap variances
stock_mom_boot=stock_time2_eh0_comp1(:,1:9);
HHstates_data_boot=var(stock_mom_boot)'; % stock variances
 
w_mom_var=var(W_time2_eh0_comp1)';
meanwi_1v=w_mom_var(1); meanwf_1v=w_mom_var(2);   meanwi_2v=w_mom_var(3);  meanwf_2v=w_mom_var(4);  sdwi_1v=w_mom_var(5); sdwf_1v=w_mom_var(6);  sdwi_2v=w_mom_var(7);   sdwf_2v=w_mom_var(8);
p10wi_1v=w_mom_var(9);  p10wf_1v=w_mom_var(10); p10wi_2v=w_mom_var(11); p10wf_2v=w_mom_var(12); p25wi_1v=w_mom_var(13); p25wf_1v=w_mom_var(14); p25wi_2v=w_mom_var(15); p25wf_2v=w_mom_var(16); 
p50wi_1v=w_mom_var(17); p50wf_1v=w_mom_var(18); p50wi_2v=w_mom_var(19); p50wf_2v=w_mom_var(20); p75wi_1v=w_mom_var(21); p75wf_1v=w_mom_var(22); p75wi_2v=w_mom_var(23); p75wf_2v=w_mom_var(24); 
p90wi_1v=w_mom_var(25); p90wf_1v=w_mom_var(26); p90wi_2v=w_mom_var(27); p90wf_2v=w_mom_var(28); minwi_1v=w_mom_var(29); minwf_1v=w_mom_var(30); minwi_2v=w_mom_var(31); minwf_2v=w_mom_var(32); 
maxwi_1v=w_mom_var(33); maxwf_1v=w_mom_var(34); maxwi_2v=w_mom_var(35); maxwf_2v=w_mom_var(36);
wage_data_boot = [meanwi_1v; meanwf_1v; meanwi_2v; meanwf_2v; sdwi_1v; sdwf_1v; sdwi_2v; sdwf_2v];
 
%boot_vector = [wage_data_boot; HHstates_data_boot];

HHstates_data=stock; % [FF;FI;FN;IF;NF;II;IN;NI;NN]; % joint-job state

 % solve dist of wage offers, value functions and simulate trajectory (MSM)
[Ff_1,ff_1,Fi_1,fi_1,Ff_2,ff_2,Fi_2,fi_2]=solve_wage_offer_dist_2(Par1,wf_1,wi_1,wf_2,wi_2,n);
[Wff,Wfi,Wfn,Wif,Wnf,Wii,Win,Wni,Wnn,iterVF]=solve_value_function_A2(Par1...
    ,Ff_1,wf_1,Fi_1,wi_1,Ff_2,wf_2,Fi_2,wi_2,n);
iterVF
if iterVF>=401
WeiDist = 1000^10;
else
[HHstates,wage_moments,transitions]=data_simulation_A12_end(Par1,ff_1,wf_1,fi_1,...
    wi_1,ff_2,wf_2,fi_2,wi_2,Wff,Wfi,Wfn,Wif,Wnf,Wii,Win,Wni,Wnn);

load hh_job_status0 hh_job_status0
load hh_job_status1 hh_job_status1
SP_effect=(sum(hh_job_status1==1)-sum(hh_job_status0==1))/sum(hh_job_status0==1);
boot_vector = [wage_data_boot(1:4);0.0152^2]; %SE=0.0152= 0.01/0.657
    
MatCov = zeros(5);
for i=1:5
    MatCov(i,i) = 1/(boot_vector(i));
end
MomSim = zeros(5,1);
MomData = zeros(5,1);
MomData = [wage_moments_data(1:4); 0.035]; %0.035 is the reduced-form effect of SP
MomSim =  [wage_moments(1:4); SP_effect];

WeiDist = 10*15*(transpose(MomData - MomSim))*MatCov*(MomData-MomSim)
end
end
